June 17, 2019 / 12:15 PM / a month ago

Missing the Target: A timeline of Kuroda-nomics

TOKYO (Reuters) - The Bank of Japan (BOJ) has postponed the timing for hitting its target of 2% inflation six times since 2013. This timeline tracks the key events and policy changes over the six years since Haruhiko Kuroda became governor of the BOJ. It gives the country’s core consumer price index (CPI) for the month the event occurred.

FILE PHOTO: Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo, Japan, September 21, 2017. REUTERS/Toru Hanai/File Photo

GRAPHIC: Missing the Target: A timeline of Kuroda-nomics - tmsnrt.rs/2IlIzY6

Jan. 2013: The BOJ sets a 2% inflation target and releases a joint statement with the government on the price target and structural reforms. (CPI: -0.20%)

Feb. 2013: BOJ Governor Masaaki Shirakawa announces his intention to resign in March, a month before his term ends in April. (CPI: -0.30%)

March 2013: BOJ Governor Haruhiko Kuroda and deputy governors Kikuo Iwata and Hiroshi Nakaso assume their posts. (CPI: -0.50%)

April 2013: The BOJ introduces quantitative and qualitative easing (QQE). (CPI: -0.40%)

July 2013: Japanese Prime Minister Shinzo Abe’s party wins a landslide victory in an Upper House election. (CPI: 0.70%)

Oct. 2013: Abe announces a plan to raise the sales tax in April the following year. (CPI: 0.90%)

Apr. 2014: The government raises the sales tax to 8% from 5%. (CPI: 1.50%)

Oct. 2014: The BOJ expands QQE by ramping up purchases of government bonds and stock index funds. (CPI: 0.90%)

Nov. 2014: Abe announces a delay of the sales tax hike to 10%; dissolves the Lower House. (CPI: 0.60%)

Feb. 2015: At a BOJ rate review, a government representative omits a request for the bank to achieve its price goal by the “earliest date possible.” (CPI: 0%)

April 2015: The BOJ pushes back the timing for hitting its inflation target for the first time. (CPI: 0.30%)

June 2015: The yen weakens to near 126 to the dollar (CPI: 0.10%)

Oct. 2015: The BOJ pushes back the timing for hitting its inflation target for the second time. (CPI: -0.10%)

Dec. 2015: The BOJ announces steps to make QQE more sustainable. (CPI: 0.10%)

Jan. 2016: The BOJ adopts negative interest rate policy; pushes back the timing for hitting its inflation target for the third time. (CPI: -0.10%)

April 2016: The BOJ pushes back the timing for hitting its inflation target for the fourth time. (CPI: -0.40%)

June 2016: Abe postpones the sales tax hike to 10% for the second time. (CPI: -0.40%)

July 2016: Abe’s ruling coalition announces a big stimulus package, wins the Upper House election. The BOJ eases its monetary policy and expands purchases of stock index funds. (CPI: -0.50%)

Sept. 2016: The BOJ shifts to a policy of yield curve control (YCC). (CPI: -0.50%)

Nov. 2016: The BOJ pushes back the timing for hitting its inflation target for the fifth time. At a rate review, a government representative urges the BOJ to be mindful of the impact its policy has on banks. (CPI: -0.40%)

April 2017: A ruling party panel submits a proposal for the BOJ to reveal details of its exit strategy. (CPI: 0.30%)

June 2017: Kuroda delivers a speech at Oxford in which he concedes that firing up inflation expectations with money-printing alone was more difficult than he expected. (CPI: 0.40%)

July 2017: The BOJ pushes back the timing for hitting its inflation target for the sixth time. (CPI: 0.50%)

Nov. 2017: Kuroda mentions “reversal rate” during a speech in Zurich. BOJ board member Hitoshi Suzuki refers to an exit plan in an interview. (CPI: 0.90%)

Jan. 2018: Several BOJ board members signal that there is room to reduce stimulus at a rate review. (CPI: 0.90%)

Feb. 2018: The government nominates Kuroda for another term. (CPI: 1%)

March 2018: Masayoshi Amamiya and Masazumi Wakatabe become BOJ deputy governors. (CPI: 0.90%)

April 2018: The BOJ removes any reference in its quarterly report to a timeframe for hitting its price target. (CPI: 0.70%)

May 2018: BOJ board member Makoto Sakurai warns of the dangers of excessive easing. (CPI: 0.70%)

June 2018: Deputy Governor Amamiya signals possibility that the monetary policy framework will be modified. (CPI: 0.80%)

July 2018: The BOJ takes steps to make YCC more flexible, allows yields to move in a wider band. (CPI: 0.80%)

Jan. 2019: Amamiya calls for vigilance regarding the side-effects of easy monetary policy. (CPI: 0.80%)

Feb. 2019: The head of Japan’s banking lobby urges the BOJ to modify its inflation price target, loose monetary policy. (CPI: 0.70%)

March 2019: Abe describes the BOJ’s inflation target as a means to spur growth and create jobs. (CPI: 0.80%)

Reporting by Leika Kihara, Editing by Peter Hirschberg

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